CASTLE ROCK, CO--(Marketwire - March 10, 2011) - Integrated Management Information, Inc. (IMI Global) (
2010 revenue up 23% to $3.3 million from $2.7 million in 2009
2010 net income of $328,000 -- $0.02 EPS
2010 adjusted EBITDA of $442,900
Four consecutive quarters of profitability and increasing revenue
Gross margins increase in fourth quarter and full year
Cash from operations up 320% in 2010 to $430,900 vs. $102,700
Integrated Management Information, Inc. (IMI Global) (
"We are very pleased with our 2010 financial performance in virtually all key financial metrics," said John Saunders, CEO of IMI Global. "In addition to posting four consecutive quarters of profitability and revenue growth, we achieved record high revenue, gross margins and net income for the full year. We also generated record operating cash flow and closed the year with strong cash and working capital positions in excess of $500,000 and $550,000, respectively. We continued to add new customers in 2010 and topped the 6,000-customer threshold late in the year -- a testament to our growing industry reputation for high-value solutions and high-quality customer service. We also launched our Where Food Comes From labeling program and brought our first high-end retailer on board. With demand for our core solutions remaining strong and Where Food Comes From gaining momentum, we believe we're well positioned to continue our revenue and earnings growth and build value for all of our stakeholders."
Full Year Results
Revenue for 2010 increased 23% to $3,274,600 from $2,660,500 in 2009. It was the Company's highest-ever full year revenue total and was attributed to growing demand for the Company's core US Verified offerings as well as new solutions. Third-party verification revenue increased 21% to $2,626,500 from $2,171,100 in 2009. Hardware revenue grew 39% to $648,000 from $466,000 in 2009.
Gross margin for the full year grew by 34% to $1,799,700, or 55% of revenue, from $1,345,800, or 51% of revenue, in 2009.
On a reported basis, selling, general and administrative (SG&A) expense in 2010 declined slightly to $1,440,200 from $1,468,500 in 2009. However, adjusted for a $169,600 bad debt provision taken in the fourth quarter of 2009, SG&A expense in 2009 would have been $1,299,000. Therefore, on an adjusted basis 2010 SG&A expense increased 11% from 2009. As a percentage of revenue, 2010 SG&A expense improved to 44% from 55% (reported) and 49% (adjusted) in 2009. During the year the Company made significant investments in marketing and advertising initiatives related to the Company's Where Food Comes From program that connects consumers with the food supply chain at the point of purchase through an unprecedented level of transparency. The program uses U.S. Department of Agriculture (USDA) Process Verified Programs (PVP) to validate marketing claims. Participating suppliers are then able to market their food products with the Where Food Comes From seal to offer consumers an added level of confidence in the product's attributes. For more information go to www.wherefoodcomesfrom.com
The Company achieved record net income of $327,800, or $0.02 per share, in 2010 versus a net loss of $153,200, or $0.01 per share, in the same period last year -- a positive swing on the bottom line of $481,000.
Fourth Quarter Results
The Company reported revenue of $871,600 in the fourth quarter, up 15% from revenue of $758,600 in the same quarter a year ago. It was IMI Global's fourth consecutive quarter of year-over-year revenue growth. Revenue from verification services, which includes the Company's industry leading USVerified™ solutions, increased 10% to $700,400 from $635,000. Hardware revenue consisting primarily of cattle identification tags increased 44% in the fourth quarter to $171,200 from $118,600 in the same quarter last year.
Gross profit in the fourth quarter increased to $520,500, or 60% of revenue, versus $408,800, or 54% of revenue, in the same quarter last year.
On a reported basis, selling, general and administrative expense declined by 22% in the fourth quarter to $396,900 from $511,000 in the fourth quarter a year ago. However, with the aforementioned $169,600 bad debt adjustment, the 2009 fourth quarter SG&A would have been $341,400.
The Company achieved net income of $116,100, or $0.01 per share, in the fourth quarter as compared with a net loss of $110,900, or $0.01 per share, in the same quarter a year ago. It was the Company's fourth consecutive quarter of profitability.
Balance Sheet Highlights
IMI Global generated $430,900 in cash from operations in 2010, a 320% increase over $102,700 in 2009. Cash and cash equivalents at December 31, 2010, were $513,100, up substantially from $214,300 a year ago. Working capital at 2010 year-end was $555,100, up from $447,200 in the third quarter and $264,000 at the close of 2009.
About IMI Global
Founded in 1995, IMI Global is a USDA Process Verified (PVP) company and is a leading provider of verification and Internet solutions for the agriculture industry. Go to www.IMIGlobal.com for additional information. IMI has worked with some of the largest agricultural organizations in the United States, providing web-based applications for verification and identification as well as a range of consulting services tailored to meet each customer's needs.
CAUTIONARY STATEMENT
This news release contains "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, based on current expectations, estimates and projections that are subject to risk. Forward-looking statements are inherently uncertain, and actual events could differ materially from the Company's predictions. Important factors that could cause actual events to vary from predictions include those discussed in our SEC filings. Specifically, statements in this news release about growth, profitability, potential, leadership, momentum, the demand for, and impact and efficacy of, the Company's products and services on the marketplace are forward-looking statements that are subject to a variety of factors, including availability of capital, personnel and other resources; competition, governmental regulation of the beef industry, the market for beef and other factors. In addition, financial results for the twelve-month periods are not necessarily indicative of future results. Readers should not place undue reliance on these forward-looking statements. The Company assumes no obligation to update its forward-looking statements to reflect new information or developments. For a more extensive discussion of the Company's business, please refer to the Company's SEC filings at www.sec.gov.
| Integrated Management Information, Inc. | ||||||||||||||||
| Statements of Operations | ||||||||||||||||
| Three months ended | 12 Months Ended | |||||||||||||||
| December 31, | December 31, | |||||||||||||||
| 2010 | 2009 | 2010 | 2009 | |||||||||||||
| Revenues | $ | 871,552 | $ | 758,590 | $ | 3,274,566 | $ | 2,660,530 | ||||||||
| Costs of revenue | 351,053 | 349,748 | 1,474,881 | 1,314,683 | ||||||||||||
| Gross profit | 520,499 | 408,842 | 1,799,685 | 1,345,847 | ||||||||||||
| Selling, general and administrative expenses | 396,865 | 511,032 | 1,440,229 | 1,468,537 | ||||||||||||
| Gain on sale of online businesses | - | - | - | (4,000 | ) | |||||||||||
| Income (loss) from operations | 123,634 | (102,190 | ) | 359,456 | (118,690 | ) | ||||||||||
| Other expense (income): | ||||||||||||||||
| Interest expense | 8,144 | 9,044 | 33,388 | 35,507 | ||||||||||||
| Other income, net | (565 | ) | (360 | ) | (1,689 | ) | (1,006 | ) | ||||||||
| Income (loss) before income taxes | 116,055 | (110,874 | ) | 327,757 | (153,191 | ) | ||||||||||
| Income taxes | - | - | - | - | ||||||||||||
| Net income (loss) | $ | 116,055 | $ | (110,874 | ) | $ | 327,757 | $ | (153,191 | ) | ||||||
| Net income (loss) per share: | ||||||||||||||||
| Basic | $ | 0.01 | $ | (0.01 | ) | $ | 0.02 | $ | (0.01 | ) | ||||||
| Diluted | $ | 0.01 | $ | (0.01 | ) | $ | 0.02 | $ | (0.01 | ) | ||||||
| Weighted average shares outstanding: | ||||||||||||||||
| Basic | 20,852,052 | 20,862,079 | 20,847,311 | 20,867,150 | ||||||||||||
| Diluted | 20,870,364 | 20,862,079 | 20,863,845 | 20,867,150 | ||||||||||||
| Integrated Management Information, Inc. | ||||||||
| Balance Sheets | ||||||||
| December 31, | December 31, | |||||||
| 2010 | 2009 | |||||||
| ASSETS | ||||||||
| Current Assets: | ||||||||
| Cash and cash equivalents | $ | 513,076 | $ | 214,329 | ||||
| Accounts receivable, net | 222,480 | 204,596 | ||||||
| Prepaid expenses and other current assets | 34,580 | 65,695 | ||||||
| Total current assets | 770,136 | 484,620 | ||||||
| Property and equipment, net | 114,544 | 134,035 | ||||||
| Intangible assets, net | 14,724 | 655 | ||||||
| Total assets | $ | 899,404 | $ | 619,310 | ||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 172,324 | $ | 161,049 | ||||
| Accrued expenses and other current liabilities | 33,608 | 51,115 | ||||||
| Short-term debt and current portion of notes payable | 9,130 | 8,467 | ||||||
| Total current liabilities | 215,062 | 220,631 | ||||||
| Notes payable and other long-term debt | 331,687 | 360,871 | ||||||
| Stockholders' equity: | ||||||||
| Preferred stock | - | - | ||||||
| Common stock | 21,039 | 20,929 | ||||||
| Additional paid-in capital | 3,401,383 | 3,387,130 | ||||||
| Treasury stock | (47,417 | ) | (20,144 | ) | ||||
| Accumulated deficit | (3,022,350 | ) | (3,350,107 | ) | ||||
| Total stockholders' equity | 352,655 | 37,808 | ||||||
| Total liabilities and stockholders' deficit | $ | 899,404 | $ | 619,310 | ||||
Contact Information:
Company Contacts:
John Saunders
Chief Executive Officer
303-895-3002
Jay Pfeiffer
Pfeiffer High Investor Relations, Inc.
303-393-7044